According to Nigel Wilson, Petronas, the Malaysian government-owned energy group, had bought half of Shell’s stake in the Evans Shoal LNG venture in the Timor Sea, reported The Australian (25/9/2007, p. B25).

Asset swap possible: Announcement that approval from the FIRB was being sought seemed to be the first step in a process that might result in Shell and Petronas swapping more assets. Shell said it had signed a strategic agreement with Petro­nas for a 25 per cent stake in Northern Territory permit NT/ P48, which includes Evans Shoal, 300km northwest of Darwin. The reservoir was found in 1988 by BHP under a farm-in to WMC but, because of high car­bon dioxide levels of about 18 per cent, it was regarded as non­commercial.

Both Petronas and Shell active in both Australia and Malaysia: Proved and prob­able recoverable dry gas re­sources in Evans Shoal were cur­rently estimated at about 6.6 trillion cubic feet and 31 million barrels of condensate. Previously Shell held 50 per cent of the permit with Santos (40 per cent and operator) and Osaka Gas (10 per cent). Petronas had been involved in Australia through its sharehold­ing in Australian Pipeline Trust, now APA Group, and the aborted Australian pipeline link of the PNG Gas project. Shell said it was a long-time player in Malaysia’s oil and gas industry with 17 production shar­ing contracts, eight of which were gas acreage, as well as being a 15 per cent partner in the two Malaysian LNG plants.